Qatar's GDP Forecasts Rapid Growth In Q4| MENAFN.COM

Sunday, 04 December 2022 06:23 GMT

Qatar's GDP Forecasts Rapid Growth In Q4


(MENAFN- The Peninsula) joel johnson | The Peninsula

Qatar's Gross Domestic Product (GDP) is expected to increase significantly due to the rising extortionate foreign investments, especially in the Liquid Natural Gas (LNG) infrastructure in the country, according to a recent report by Fitch Solutions.

Fitch Solutions is optimistic of a potential increase of the Gross Domestic Product (GDP) from 4.3 percent to 4.6 percent in Q4 this year. The report's key spotlight was on the upswing of Qatar's economy and the impact it will have on investors around the globe.

The recent quarterly data shows that the economy of the Arab State plunged by 6.4 percent year-on-year in Q2 2022. This palpably is one of the highest growth rates since Q4 2014 as immense contribution comes from non-oil industries.

A buoyant economy was witnessed during this year's Q3 and the GDP anticipates a momentous escalation in Q4 conspicuously in relation to the ongoing sporting tournament.“We believe that economic momentum has remained strong in Q322 and that real GDP growth will witness even faster growth in Q422, especially amid stronger consumption and services exports during the FIFA World Cup, which runs from November to December 2022,” it said.

The swift growth is a magnificent turnout eventually boosting the economy with a mixture of major investments in gas and oil in addition to the outpouring number of visitors next year. The report highlighted that“Hydrocarbon-related investment will allow the fixed capital formation to provide the largest contribution to real GDP growth in 2023. In recent months the country has witnessed an uptick in investment from a number of US and European oil majors, including Shell, ExxonMobil, ConocoPhillips, and TotalEnergies, which will drive up oil-related investment activity.” 

According to the report by Fitch, Qatar Energy - the oil and gas industry overseer firm announced a deal to invest an additional QR1.5bn towards the North Field South expansion project. The curated data reveals that the real GDP growth will surge by 0.9 percent next year. With various international events including FIFA hosted by Qatar, exporting gas and other goods will continue to leap with international trade taking place on a regular basis. The findings of the report said that“Growth in Qatar's gas exports, which account for the majority of total goods exports, will remain largely flat for the second consecutive year.” 

“Indeed, our Oil and Gas team expects that the recent uptick in investment into Qatar's natural gas extraction infrastructure, including the expansion of the North Field production facility, will largely begin to take effect only in 2025,” it added.

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